Crypto hedge fund Three Arrows submits a Chapter 15 bankruptcy petition

Crypto hedge fund Three Arrows submits a Chapter 15 bankruptcy petition

According to a court filing filed on Friday, cryptocurrency hedge fund Three Arrows Capital (3AC) is looking for protection from American creditors under Chapter 15 of the U.S. Bankruptcy Code, which enables foreign debtors to shield U.S. assets.

According to sources, which cited a source familiar with the situation, Singapore-based 3AC is one of the most well-known investors affected by the sudden decline in cryptocurrency markets and is currently being liquidated.

On Friday, as per court records, representatives for 3AC submitted a petition to the U.S. Bankruptcy Court for the Southern District of New York.

The controversial fund was accused of breaching its asset barrier and giving incorrect information on Thursday by Singapore's finance regulator.

Chapter 15 is used by non-American businesses to stop creditors from suing them or seizing their assets here in the country.